AUGUSTA -- Morris Publishing Group, parent company of the Savannah Morning News and savannahnow.com, announced today it has completed all the steps needed to finish its prepackaged plan of reorganization and has officially emerged from bankruptcy.

"Yesterday, we completed our formal debt restructuring, with Morris Publishing emerging with a significantly de-leveraged balance sheet," said William S. Morris III, chairman of Morris Publishing. "I am grateful for the support of all of our lenders, bondholders and professionals who have worked cooperatively, constructively and tirelessly to arrive at this mutual resolution.

"In addition, I want to thank all of our employees, suppliers, advertisers and readers for their patience and dedication during the restructuring process. We can now focus without distraction on our ongoing efforts to improve all facets of our core newspaper business."

Consistent with the plan confirmed by the U.S. Bankruptcy Court on February 17, 2010, approximately $278.5 million principal amount of senior subordinated notes plus accrued and unpaid interest has been cancelled in exchange for $100 million of new secured notes due in 2014.

Concurrent with the exchange of bondholder debt, the Morris family, through its affiliated entities, made a capital contribution to Morris Publishing of approximately $85 million and repaid approximately $25 million in intercompany debt due Morris Publishing. In addition, Morris Publishing repaid from cash on hand the entire $19.7 million principal amount of Tranche A senior secured debt plus accrued interest.